SB 189

SENATE BILL 26-189
BY SENATOR(S) Rodriguez and Coleman, Baisley, Amabile, Ball,
Benavidez, Bridges, Cutter, Exum, Frizell, Kirkmeyer, Kolker, Lindstedt,
Marchman, Pelton B., Pelton R., Rich, Simpson, Snyder;
also REPRESENTATIVE(S) Duran and Bacon, Titone, Boesenecker,
Brown, Caldwell, Carter, Clifford, English, Flanell, Goldstein, Gonzalez R.,
Hamrick, Jackson, Lieder, Lindsay, McCormick, Nguyen, Paschal, Rutinel,
Slaugh, Smith, Story, Velasco, Winter T., McCluskie.
CONCERNING THE USE OF AUTOMATED DECISION-MAKING TECHNOLOGY IN
     CONSEQUENTIAL DECISIONS, AND, IN CONNECTION THEREWITH,
     MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
      SECTION 1. In Colorado Revised Statutes, repeal and reenact,
with amendments, part 17 of article 1 of title 6 as follows:
                         PART 17
          AUTOMATED DECISION-MAKING TECHNOLOGY
               IN CONSEQUENTIAL DECISIONS
        6-1-1701. Definitions.
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
      AS USED IN THIS PART       17, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
      (1) "ADVERSE OUTCOME" MEANS:
      (a)    A   DECISION THAT DENIES, TERMINATES, REVOKES, OR
MATERIALLY REDUCES OR RESTRICTS A CONSUMER'S ACCESS TO, ELIGIBILITY
FOR, SELECTION FOR, COMPENSATION FOR, OR THE PROVISION OF AN
OPPORTUNITY OR SERVICE; OR
      (b)   A DECISION THAT RESULTS IN MATERIALLY LESS FAVORABLE
DIFFERENTIATED PRICE, COST, COMPENSATION, OR OTHER MATERIAL TERMS
THAT ARE REASONABLY LIKELY TO MATERIALLY LIMIT, DELAY, OR
EFFECTIVELY DENY, OR OTHER WISE FUNDAMENTALLY ALTER, A CONSUMER'S
ACCESS TO, ELIGIBILITY FOR, SELECTION FOR, COMPENSATION FOR, OR THE
PROVISION OF AN OPPORTUNITY OR SERVICE COMPARED TO TERMS OFFERED
TO SIMILARLY SITUATED CONSUMERS. IF A DECISION OUTCOME IMPOSES
MATERIALLY LESS FA VO RAB LE DIFFERENTIATED PRICING OR TERMS, THE
DECISION OUTCOME MATERIALLY INFLUENCES PRICE, COST SHARING,
COMPENSATION, OR MATERIAL TERMS.
      (2) (a) "AUTOMATED DECISION-MAKING TECHNOLOGY" OR "ADMT"
MEANS A TECHNOLOGY THAT PROCESSES PERSONAL DATA AND USES
COMPUTATION      TO   GENERATE    OUTPUT,   INCLUDING   PREDICTIONS,
RECOMMENDATIONS, CLASSIFICATIONS, RANKINGS, SCORES, OR OTHER
INFORMATION THAT IS USED TO MAKE, GUIDE, OR ASSIST A DECISION,
JUDGMENT, OR DETERMINATION CONCERNING AN INDIVIDUAL.
      (b)   "AUTOMATED DECISION-MAKING TECHNOLOGY" OR "ADMT"
DOES NOT INCLUDE:
      (I) THE FOLLOWING TECHNOLOGIES:
      (A) ANTI-MALWARE;
      (B) ANTI-VIRUS;
      (C) CALCULATORS;
PAGE 2-SENATE BILL 26-189
      (D) DATABASES;
      (E) DATA STORAGE;
      (F) FIREWALLS;
      (G) INTERNET DOMAIN REGISTRATION;
      (H) INTERNET WEBSITE LOADING;
      (I) NETWORKING;
      (J) SPAM- AND ROBOCALL-FILTERING;
      (K) SPELL-CHECKING;
      (L) SPREADSHEETS THAT REQUIRE HUMAN ANALYSIS AND DO NOT
USE MACHINE LEARNING, FOUNDATION MODELS, OR LARGE LANGUAGE
MODELS;
      (M) WEB CACHING; OR
      (N) WEB HOSTING;
     (II) A TOOL USED BY AN INDIVIDUAL SOLELY TO SUMMARIZE,
ORGANIZE, TRANSLATE, DRAFT, ROUTE, OR PRESENT INFORMATION FOR
HUMAN REVIEW OF ADMINISTRATIVE PROCESSING; OR
      (III)   TECHNOLOGY THAT COMMUNICATES WITH CONSUMERS IN
NATURAL LANGUAGE OR OTHER MEANS READILY UNDERSTOOD BY AN
AVERAGE CONSUMER FOR THE PURPOSE OF PROVIDING CONSUMERS WITH
INFORMATION, MAKING REFERRALS OR RECOMMENDATIONS, ANSWERING
QUESTIONS, OR GENERATING OTHER CONTENT, IF:
      (A)     THE TECHNOLOGY IS NOT CONTRACTED, ADVERTISED,
MARKETED, CONFIGURED, OR INTENDED BY A PERSON TO BE USED IN A
CONSEQUENTIAL DECISION; AND
      (B) THE TECHNOLOGY IS SUBJECT TO AN ACCEPTABLE USE POLICY
THAT PROHIBITS GENERA TED CONTENT TO BE USED IN A CONSEQUENTIAL
PAGE 3-SENATE BILL 26-189
DECISION.
       (3) (a) "CONSEQUENTIAL DECISION" MEANS:
       (I)    A DECISION, DETERMINATION, OR ACTION MADE ABOUT A
CONSUMER THAT RELATES TO THE PROVISION OF OR A CONSUMER'S ACCESS
TO, ELIGIBILITY FOR, SELECTION FOR, OR COMPENSATION FOR A COVERED
DOMAIN;OR
       (II) A DECISION, DETERMINATION, OR ACTION ABOUT A CONSUMER
THAT RELATES TO A DIFFERENTIATED PRICE, COST SHARING, COMP EN SATION,
OR OTHER MATERIAL TERMS IN A MANNER THAT IS REASONABLY LIKELY TO
MATERIALLY      LIMIT,   DELAY,   EFFECTIVELY   DENY,   OR   OTHERWISE
FUNDAMENTALLY ALTER THE CONSUMER'S ACCESS, ELIGIBILITY, OR
OPPORTUNITY FOR A COVERED DOMAIN.
       (b) "CONSEQUENTIAL DECISION" DOES NOT INCLUDE:
       (I) LOW-STAKES OR ROUTINE DECISIONS, ACTIONS, AND BUSINESS
PROCESSES THAT DO NOT MATERIALLY INFLUENCE ELIGIBILITY FOR,
SELECTION FOR, DENIAL OF, COMPENSATION FOR, PRICING OF, OR ACCESS TO
AN OPPORTUNITY OR SERVICE FORA COVERED DOMAIN, INCLUDING ROUTINE
SCHEDULING, CLASSROOM PERSONALIZATION, ADMINISTRATIVE ROUTING,
CUSTOMER SERVICE TRIAGE, COMMUNICATION OF DECISIONS, OR WORKFLOW
MANAGEMENT;
       (11)    ADVERTISING,    MARKETING,   DIFFERENTIATED    PRODUCT
RECOMMENDATIONS, SEARCH, OR CONTENT MODERATION;
       (111) SPREADSHEETS THAT REQUIRE MANUAL HUMAN ANALYSIS AND
DO NOT USE MACHINE LEARNING, FOUNDATION MODELS, OR LARGE
LANGUAGE MODELS;
       (IV)    ACTIONS IN WHICH AN ADMT IS USED TO SUMMARIZE,
ORGANIZE, OR PRESENT INFORMATION FOR HUMAN REVIEW AND THE SYSTEM
DOES    NOT    PRODUCE     A   SCORE,   RANKING,   RECOMMENDATION,
CLASSIFICATION, PREDICTION, OR OTHER INFERENCE THAT MATERIALLY
INFLUENCES AN OUTCOME OR A DECISION;
       (V) NARROW PROCEDURAL TASKS OR DATA-PROCESSING FUNCTIONS
PAGE 4-SENATE BILL 26-189
THAT DO NOT GENERA TE A PREDICTION OR INFERENCE ABOUT A CONSUMER
OR MATERIALLY INFLUENCE A  CONSEQUENTIAL     DECISION   OR
CONSEQUENTIAL DECISION PROCESS;
       (VI)     ACTIVITIES     RELATING    TO    TECHNOLOGIES   USED   FOR
CYBERSECURITY, SPAM-AND ROBO-CALL FILTERING, SYSTEM RELIABILITY,
AND ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING
CONTROLS;
       (VII) ACTIVITIES RELATING TO TECHNOLOGIES USED FOR ECONOMIC
SANCTIONS COMPLIANCE, INCLUDING UNDER THE FEDERAL "BANK SECRECY
ACT", 12 U.S.C. SEC. 1951 ET SEQ.; THE FEDERAL "USA PATRIOT ACT",
PUB.L. 107-56; THE FEDERAL TRADE COMMISSION'S RED FLAGS RULE, 16
CFR 681, AS AMENDED; AND SANCTIONS PROGRAMS ADMINISTERED BY THE
UNITED STATES DEPARTMENT OF THE TREASURY, EXCLUDING FACIAL
RECOGNITION UNLESS THE SOLE PURPOSE OF WHICH IS TO CONFIRM AN
INDIVIDUAL'S IDENTITY;
      (VIII) ACTIVITIES RELATING TO TECHNOLOGIES USED FOR FRAUD
PREVENTION,        INCLUDING    IDENTITY        VERIFICATION,   CONSUMER
IDENTIFICATION, MONITORING, AND REPORTING CONTROLS REQUIRED UNDER
STATE OR FEDERAL LAW; OR
      (IX) ROUTINE ACADEMIC ADMINISTRATION AND STUDENT SUPPORT
PROCESSES THAT DO NOT MATERIALLY INFLUENCE A CONSEQUENTIAL
DECISION.
      (4) (a) "CONSUMER" HAS THE MEANING SET FORTH IN SECTION
6-1-1303 (6)(a).
      (b) "CONSUMER" INCLUDES AN EMPLOYEE, A JOB APPLICANT WHO IS
A COLORADO RESIDENT, AND ANY INDIVIDUAL WHOSE ACCESS TO,
ELIGIBILITY FOR, OR OPPORTUNITY IN COLORADO IS EVALUATED IN A
CONSEQUENTIAL DECISION BY A PERSON DOING BUSINESS IN COLORADO.
      (5)     "COVERED ADMT" MEANS AUTOMATED DECISION-MAKING
TECHNOLOGY THAT IS USED TO MATERIALLY INFLUENCE A CONSEQUENTIAL
DECISION.
      (6) "COVERED DOMAIN" MEANS:
PAGE 5-SENATE BILL 26-189
      (a) AN EDUCATION ENROLLMENT OR AN EDUCATION OPPORTUNITY;
     (b) EMPLOYMENT ORAN EMPLOYMENTOPPORTUNITYTHATCREATES
OR MAY CREATE AN EMPLOYER-EMPLOYEE RELATIONSHIP;
      (C) THE LEASE OR PURCHASE OF RESIDENTIAL REAL ESTATE IN
COLORADO;
      (d) A FINANCIAL OR LENDING SERVICE;
      (e) INSURANCE, INCLUDING UNDERWRITING, PRICING, COVERAGE,
CLAIMS ADJUDICATION, OR OTHER DETERMINATIONS THAT MATERIALLY
AFFECT ACCESS TO BENEFITS;
      (t) HEALTH-CARE SERVICES; OR
      (g)    ESSENTIAL GOVERNMENT SERVICES AND PUBLIC BENEFITS,
INCLUDING ELIGIBILITY AND RENEWAL DETERMINATIONS.
     (7) "DEPLOYER" MEANS A PERSON DOING BUSINESS IN COLORADO
THAT DEPLOYS A COVERED ADMT.
     (8)    (a)   "DEVELOPER" MEANS A PERSON DOING BUSINESS IN
COLORADO THAT:
     (I) DEVELOPS, OFFERS, SELLS, LEASES, LICENSES, OR OTHERWISE
MAKES COMMERCIALLY AVAILABLE A COVERED ADMT;
     (11)  DEVELOPS A COMPONENT THAT IS DESIGNED, MARKETED,
INTENDED, DOCUMENTED, ADVERTISED, CONFIGURED, OR CONTRACTED TO
BE USED AS PART OF A COVERED ADMT; OR
     (III) INTENTIONALLY AND SUBSTANTIALLY MODIFIES AN ADMT
SUCH THAT IT BECOMES A COVERED ADMT.
     (b) "DEVELOPER" DOES NOT INCLUDE A PERSON THAT:
     (I) DEVELOPS AND USES AN ADMT:
     (A) SOLELY FOR RESEARCH PURPOSES AND THE ADMT IS NOT USED
PAGE 6-SENATE BILL 26-189
IN A CONSEQUENTIAL DECISION IN THE RESEARCH; OR
      (B) FOR INTERNAL PURPOSES, SUCH AS USE AND DEVELOPMENT
ACTIVITIES BY AFFILIATES AND COMMERCIAL SUPPORT FUNCTIONS, AND
THAT DOES NOT MAKE THE SYSTEM AVAILABLE TO ANOTHER PERSON FOR
USE IN A CONSEQUENTIAL DECISION;
       (II)    IS A PRECEDING DEVELOPER THAT MAKES AN ADMT
COMMERCIALLY AVAILABLE AND AN UNAFFILIATED PERSON MODIFIES THE
COVERED ADMT IN A MANNER THAT CHANGES THE SYSTEM'S INTENDED,
DOCUMENTED, MARKETED, ADVERTISED, CONFIGURED, OR CONTRACTED USE;
OR
       (Ill)    HAS DESIGNED, MARKETED, INTENDED, DOCUMENTED,
ADVERTISED,CONFIGURED,ORCONTRACTEDACOMPONENTTHATISUSEDAS
PART OF AN ADMT, BUT THE COMPONENT IS INTEGRATED INTO A COVERED
ADMT WITHOUT THE ACTUAL KNOWLEDGE OF THE PERSON.
       (9) "EMPLOYEE" HAS THE MEANING SET FORTH IN SECTION 8-4-101
(5).
       ( 10) "EMPLOYER" HAS THE MEANING SET FORTH IN SECTION 8-4-101
(6).
       ( 11) "FERPA" MEANS THE FEDERAL "FAMILY EDUCATIONAL RIGHTS
AND PRIVACY ACT OF 1974", 20 U.S.C. SEC. 1232g ET SEQ., AND ITS
IMPLEMENTING REGULATIONS.
       (12)    "INTENTIONAL AND SUBSTANTIAL MODIFICATION" MEANS A
DELIBERATE CHANGE MADE TO AN ADMT THAT RESULTS IN A MATERIAL
CHANGE TO THE SYSTEM'S        INTENDED,   DOCUMENTED,   ADVERTISED,
CONFIGURED, OR CONTRACTED USE.
       (13) (a) "MATERIALLY INFLUENCE" MEANS:
       (I) AN ADMT OUTPUT IS A NON-DE MINIMIS FACTOR THAT IS USED
IN MAKING A CONSEQUENTIAL DECISION; AND
       (II)     AN   ADMT   OUTPUT   AFFECTS   THE   OUTCOME   OF   A
CONSEQUENTIAL DECISION, INCLUDING BY CONSTRAINING, RANKING,
PAGE 7-SENATE BILL 26-189
SCORING, RECOMMENDING, CLASSIFYING, OR OTHERWISE MEANINGFULLY
ALTERING HOW A CONSEQUENTIAL DECISION IS MADE.
      (b) "MATERIALLY INFLUENCE" DOES NOT INCLUDE INCIDENTAL,
TRIVIAL, OR CLERICAL USES.
      (14) (a) "MATERIAL UPDATE" MEANS AN UPDATE, PATCH, RELEASE,
REVISION, OR NEW VERSION OF A COVERED ADMT, INCLUDING ASSOCIATED
SOFTWARE, MODEL PARAMETERS, DEFAULT SETTINGS, OR DOCUMENTATION,
THAT A DEVELOPER KNOWS OR REASONABLY SHOULD KNOW IS LIKELY TO
MATERIALLY AFFECT:
      (I) THE COVERED AD MT'S OUTPUTS OR PERFORMANCE IN A MANNER
RELEVANT TO ITS INTENDED USE; OR
      (II) THE DEVELOPER'S STATED INTENDED USE FOR THE COVERED
ADMT.
      (b)      "MATERIAL     UPDATE"   DOES   NOT   INCLUDE   ROUTINE
MAINTENANCE, COSMETIC CHANGES, OR BUG FIXES THAT DO NOT
MATERIALLY INFLUENCE:
      (I) A COVERED ADMT'S OUTPUTS OR PERFORMANCE IN A MANNER
RELEVANT TO ITS INTENDED USE; OR
    (11)      A DEVELOPER'S STATED INTENDED USE FOR THE COVERED
ADMT.
      ( 15)    "MEANINGFUL HUMAN REVIEW" MEANS REVIEW BY A
INDIVIDUAL DESIGNATED BY THE DEPLOYER WHO HAS AUTHORITY TO
APPROVE, MODIFY, OR OVERRIDE A CONSEQUENTIAL DECISION AND WHO:
      (a) CONSIDERS RELEVANT, AVAILABLE PRIMARY EVIDENCE;
      (b) IS TRAINED TO CONDUCT THE REVIEW;
      (c) DOES NOT DEFAULT TO THE SYSTEM OUTPUT; AND
      (d) HAS ACCESS TO SUFFICIENT INFORMATION TO UNDERSTAND:
PAGE 8-SENATE BILL 26-189
       (I) THE OUTPUT'S:
       (A) INTENDED USE;
       (8) MATERIAL LIMITATIONS; AND
       (C) CATEGORIES OF INPUTS; AND
       (II) THE PRINCIPAL FACTORS USED TO GENERATE THE OUTPUT,
WITHOUT REQUIRING DISCLOSURE OF PROPRIETARY SOURCE CODE, MODEL
WEIGHTS, OR OTHER TRADE SECRETS.
      (16) "PERSONAL DATA" HAS THE MEANING SET FORTH IN SECTION
6-1-1303 (17).
       (17)   "TRADE SECRET" HAS THE MEANING SET FORTH IN SECTION
7-74-102 (4).
       6-1-1702. Developer responsibilities - documentation.
       (1) ON AND AFTER JANUARY 1, 2027, A DEVELOPER SHALL MAKE
AVAILABLE TO EACH DEPLOYER OF A COVERED ADMT DEVELOPED BY THE
DEVELOPER,       IN   A   FORM   AND   MANNER   THAT   IS   REASONABLY
UNDERSTANDABLE TO A DEPLOYERAND THAT PROTECTS TRADE SECRETS OR
INFORMATION PROTECTED FROM DISCLOSURE BY STATE OR FEDERAL LAW:
       (a) A GENERAL STATEMENT DESCRIBING THE INTENDED USES AND
KNOWN HARMFUL OR INAPPROPRIATE USES OF THE COVERED ADMT;
      (b)     A DESCRIPTION OF THE CATEGORIES OF DAT A, INCLUDING
PERSONAL DATA, USED TO TRAIN THE COVERED ADMT, TO THE EXTENT
KNOWN;
      (c) KNOWN LIMITATIONS OF THE COVERED ADMT, INCLUDING
KNOWN RISKS AND CIRCUMSTANCES IN WHICH THE COVERED ADMT SHOULD
NOT BE USED;
      (d)       INSTRUCTIONS FOR THE DEPLOYER'S APPROPRIATE USE,
MONITORING, AND MEANINGFUL HUMAN REVIEW, WHERE APPLICABLE;
PAGE 9-SENATE BILL 26-189
     (e) INFORMATION REASONABLY NECESSARY FOR THE DEPLOYER TO
COMPLY WITH SECTION 6-1-1704. IF INFORMATION IS WITHHELD, THE
DEVELOPER SHALL NOTIFY THE DEPLOYER.
      (2) (a)
           A DEVELOPER SHALL PROVIDE TO EACH DEPLOYER OF A
COVERED ADMT DEVELOPED BY THE DEVELOPER A NOTICE OF MATERIAL
UPDATES, INTENTIONAL AND SUBSTANTIAL MODIFICATIONS, AND CHANGES
TO THE INTENDED USE OF, LIMITATIONS FOR, OR RISK MITIGATION FOR THE
COVERED ADMT WITHIN A REASONABLE TIME.
      (b) A DEVELOPER MAY USE PUBLIC RELEASE NOTES CONTA IN ING THE
INFORMATIONREQUIREDBYSUBSECTION(2)(a)OFTHISSECTIONTOCOMPLY
WITH THIS SUBSECTION (2) IF THE DEVELOPER PROVIDES DIRECT NOTICE OF
THE PUBLIC RELEASE TO EACH DEPLOYER OF THE COVERED ADMT.
      (3) A DEVELOPER IS SUBJECT TO THE DISCLOSURE REQUIREMENTS
DESCRIBED IN SUBSECTIONS ( 1) AND (2) OF THIS SECTION ONLY FOR A
DEPLOYER'S USE OF A COVERED ADMT WHERE THE ADMT WAS MARKETED,
ADVERTISED, CONFIGURED, CONTRACTED, SOLD, OR LICENSED TO BE USED
TO MATERIALLY INFLUENCE A CONSEQUENTIAL DECISION.
      ( 4) A DEVELOPER SHALL RETAIN, FOR NOT LESS THAN THREE YEARS
AFTER THE CREATION OF A RECORD REQUIRED OR CREATED UNDER THIS
SECTION OR FOR A LONGER PERIOD IF REQUIRED BY APPLICABLE STATE OR
FEDERAL LAW, RECORDS REASONABLY NECESSARY TO DEMONSTRATE
COMPLIANCE WITH THIS SECTION. RECORDS INCLUDE SYSTEM VERSION
IDENTIFIERS, CHANGELOGS, AND DOCUMENTATION AND NOTICES OF
MATERIAL UPDATES PROVIDED TO DEPLOYERS PURSUANT TO SUBSECTION (2)
OF THIS SECTION.
      (5) THIS SECTION APPLIES WHEN A DEVELOPER CREATES A COVERED
ADMT THAT IS INTENDED, DOCUMENTED, MARKETED, ADVERTISED,
CONFIGURED, OR CONTRACTED TO BE USED TO MAKE CONSEQUENTIAL
DECISIONS OR WHEN THE DEVELOPER BECOMES A WARE THAT THE COVERED
ADMT IS BEING USED TO MAKE CONSEQUENTIAL DECISIONS IN A MANNER
CONSISTENT WITH THE INTENDED AND CONTRACTED USES.
      6-1-1703. Deployer record keeping.
      A DEPLOYER SHALL RETAIN, FOR NOT LESS THAN THREE YEARS AFTER
PAGE 10-SENATE BILL 26-189
THE DATE OF A CONSEQUENTIAL DECISION OR FOR A LONGER PERIOD IF
REQUIRED BY APPLICABLE STATE OR FEDERAL LAW, RECORDS REASONABLY
NECESSARY TO DEMONSTRATE COMPLIANCE WITH THIS PART 17. RECORDS
MAY INCLUDE, AS APPLICABLE, COVERED ADMT VERSION IDENTIFIERS,
CHANGELOGS, AND DOCUMENTATION OF MATERIAL MITIGATION CHANGES.
       6-1-1704. Deployer disclosures - point-of-interaction notice -
public posting option - post-adverse outcome disclosures - legislative
declaration - trade secrets - compliance with other law - accessibility -
rules.
       ( 1) PRIOR TO A DEPLOYER USING A COVERED ADMTTO MATERIALLY
INFLUENCE A CONSEQUENTIAL DECISION, THE DEPLOYER SHALL PROVIDE A
CLEAR AND CONSPICUOUS NOTICE TO A CONSUMER THAT THE DEPLOYER
USED OR WILL USE A COVERED ADMT IN A CONSEQUENTIAL DECISION
AFFECTING THE CONSUMER AND INSTRUCTIONS REGARDING HOW THE
CONSUMER MAY OBTAIN THE ADDITIONAL INFORMATION DESCRIBED IN THIS
SECTION.
      (2) A DEPLOYER COMPLIES WITH SUBSECTION ( 1) OF THIS SECTION BY
MAINTAINING A PROMINENT PUBLIC NOTICE THAT IS  REASONABLY
ACCESSIBLE AT POINTS OF CONSUMER INTERACTION, INCLUDING THROUGH
A LINK OR POSTING THAT IS REASONABLY PROXIMATE TO THE INTERACTION
OR TRANSACTION IN WHICH A CONSEQUENTIAL DECISION MAY OCCUR.
      (3)   IF A DEPLOYER USES A COVERED ADMT TO MATERIALLY
INFLUENCE A CONSEQUENTIAL DECISION THAT RESULTS IN AN ADVERSE
OUTCOME FOR A CONSUMER, THE DEPLOYER SHALL PROVIDE WITHIN THIRTY
DAYS AFTER MAKING THE DECISION:
      (a)   A PLAIN LANGUAGE DESCRIPTION OF THE CONSEQUENTIAL
DECISION AND THE      ROLE THE COVERED        ADMT     PLAYED    IN THE
CONSEQUENTIAL DECISION;
      (b) INSTRUCTIONS AND A SIMPLE-TO-FOLLOW PROCESS TO REQUEST
ADDITIONAL INFORMATION ABOUT THE COVERED ADMT AND THE INPUTS,
INCLUDING THE NAME OF THE COVERED ADMT, THE COVERED ADMT
VERSION NUMBER, IF APPLICABLE, THE COVERED ADMT DEVELOPER, AND
THE TYPES, CATEGORIES, AND SOURCES OF PERSONAL DATA USED, TO THE
EXTENT THE DEPLOYER RECEIVES THE NECESSARY INFORMATION FROM THE
PAGE I I-SENATE BILL 26-189
DEVELOPER IN COMPLIANCE WITH SECTION 6-1-1702; AND
      (c)     AN EXPLANATION OF THE CONSUMER RIGHTS DESCRIBED IN
SECTION 6-1-1705 AND HOW TO EXERCISE THEM.
      (4) (a) THE GENERAL ASSEMBLY F_INDS THAT THE SPECIFIC CONTENT
AND FORMAT OF POST-ADVERSE OUTCOME DISCLOSURES MAY VARY ACROSS
CONSEQUENTIAL DECISION DOMAINS. THE GENERAL ASSEMBLY INTENDS
THATTHESPECIFICELEMENTSOFPOST-ADVERSEOUTCOMEDISCLOSURESBE
FURTHER CLARIFIED THROUGH RULE-MAKING THAT ACCOUNTS FOR
SECTOR-SPECIFIC PRACTICES WHILE ENSURING THAT CONSUMERS RECEIVE
MEANINGFUL AND UNDERSTANDABLE INFORMATION ABOUT CONSEQUENTIAL
DECISIONS.
      (b)     ON OR BEFORE JANUARY 1, 2027, THE ATTORNEY GENERAL
SHALL ADOPT RULES TO CLARIFY AND IMPLEMENT THE POST-ADVERSE
OUTCOME DISCLOSURE REQUIREMENTS SET FORTH IN SUBSECTION (3) OF THIS
SECTION. RULES ADOPTED PURSUANT TO THIS SUBSECTION ( 4) MAY INCLUDE,
AS APPROPRIATE:
      (I)     RULES CLARIFYING THE CONTENT OF REQUIRED DISCLOSURES
RELATED TO THE TYPES, SOURCES, OR CATEGORIES OF PERSONAL DAT ATHA T
A DEPLOYER MUST PROVIDE TO A CONSUMER FOLLOWING AN ADVERSE
OUTCOME INVOLVING A COVERED ADMT PURSUANT TO SUBSECTION (3) OF
THIS SECTION;
      (II)     SECTOR-SPECIFIC GUIDANCE OR ILLUSTRATIVE EXAMPLES
TAILORED TO DIFFERENT COVERED DOMAINS;
      (III)    STANDARDS FOR DESCRIBING THE ROLE OF THE COVERED
ADMT IN A CONSEQUENTIAL DECISION IN A MANNER THAT IS REASONABLY
UNDERSTANDABLE TO A CONSUMER; AND
      (IV) GUIDANCE ADDRESSING HOW THE DISCLOSURE REQUIREMENTS
DESCRIBED IN THIS SECTION INTERACT WITH FEDERAL OR STATE LAWS THAT
REQUIRE OR GOVERN NOTICES, EXPLANATIONS, OR ADVERSE OUTCOME
DISCLOSURES.
      (5) NOTHING IN THIS SECTION REQUIRES A DEPLOYER TO DISCLOSE
A TRADE SECRET OR INFORMATION PROTECTED FROM DISCLOSURE BY STATE
PAGE 12-SENATE BILL 26-189
OR FEDERAL LAW. IF A DEPLOYER WITHHOLDS INFORMATION PURSUANT TO
THIS SUBSECTION (5), THE DEPLOYER SHALL NOTIFY THE CONSUMER.
      (6) (a) A CREDITOR, WITH RESPECT TO A CONSEQUENTIAL DECISION
INVOLVING THE OFFERING, THE DENIAL, THE PRICING, THE SERVICING, OR
OTHER MATERIAL TERMS OF CREDIT, THAT IS REQUIRED TO PROVIDE AND
THAT PROVIDES A NOTICE TO A CONSUMER PURSUANT TO THE FEDERAL
"EQUAL CREDIT OPPORTUNITY ACT", 15 U.S.C. SEC.1691 ET SEQ., AND ITS
IMPLEMENTING REGULATIONS, INCLUDING REGULATION B, 12 CFR 1002,
AND, WHEN APPLICABLE, THE FEDERAL "FAIR CREDIT REPORTING ACT", 15
U.S.C. SEC. 1681 ET SEQ., COMPLIES WITH THE NOTICE OR DISCLOSURE
REQUIREMENTS OF THIS SECTION THAT RELATE TO THE SAME DECISION OR
ADVERSE OUTCOME IF THE NOTICE PROVIDED TO THE CONSUMER PURSUANT
TO THE FEDERAL LAWS AND REGULATIONS DESCRIBED IN THIS SUBSECTION
(6)(a) ALSO SATISFIES THE NOTICE OR DISCLOSURE REQUIREMENTS OF THIS
SECTION.
      (b)    IF A CREDITOR COMPLIES WITH THE FEDERAL LAWS AND
REGULATIONS DESCRIBED IN SUBSECTION (6)(a) OF THIS SECTION AND
COMPLIES WITH SUBSECTION (6)(a) OF THIS SECTION, THE CREDITOR IS NOT
REQUIRED TO PROVIDE A SEPARATE OR DUPLICATIVE NOTICE PURSUANT TO
THIS SECTION.
      (c)   NOTHING IN THIS SUBSECTION (6) SHALL BE CONSTRUED TO
REQUIRE A CREDITOR TO PROVIDE ANY NOTICE OR DISCLOSURE IN A MANNER
THAT IS PROHIBITED BY FEDERAL LAW.
      (d) FORPURPOSESOFTHISSUBSECTION(6),ANOTICETHATCOMPLIES
WITH THE FEDERAL LAWS AND REGULATIONS DESCRIBED IN SUBSECTION
(6)(a) OF THIS SECTION AND COMPLIES WITH SUBSECTION (6)(a) OF THIS
SECTION MAY INCLUDE A BRIEF STATEMENT INDICATING THAT A COVERED
ADMT WAS USED TO MATERIALLY INFLUENCE THE CONSEQUENTIAL
DECISION AND INSTRUCTIONS FOR HOW THE CONSUMER MAY OBTAIN ANY
ADDITIONAL INFORMATION OR EXERCISE ANY RIGHTS PROVIDED UNDER THIS
PART 17.
      (7) THIS PART 17 SHALL NOT BE CONSTRUED TO REQUIRE A PERSON
TO MAKE A DISCLOSURE, PROVIDE AN EXPLANATION, OR FURNISH
INFORMATION TO A CONSUMER TO THE EXTENT DOING SO WOULD BE
PROHIBITED    BY   FEDERAL   LAW     OR   WOULD   COMPROMISE    THE
PAGE 13-SENATE BILL 26-189
CONFIDENTIALITY OR INTEGRITY OF CYBERSECURITY, FRAUD PREVENTION,
ANTI-MONEY LAUNDERING, COUNTER-TERRORIST FINANCING, OR ECONOMIC
SANCTIONS COMPLIANCE PROGRAMS REQUIRED BYLAW.
      (8) A DEPLOYER OR DEVELOPER SHALL PROVIDE THE NOTICES AND
DISCLOSURES REQUIRED BY THIS PART 17 IN A MANNER THAT IS REASONABLY
ACCESSIBLE TO CONSUMERS WITH DISABILITIES AND CONSUMERS WITH
LIMITED ENGLISH PROFICIENCY, CONSISTENT WITH APPLICABLE STATE AND
FEDERAL LAW.
      (9) (a) FOR A CONSEQUENTIAL DECISION RELATING TO EDUCATION,
A DEPLOYER THAT IS SUBJECT TO FERPA SATISFIES THE NOTICE AND
DISCLOSURE REQUIREMENTS OF THIS SECTION BY PROVIDING NOTICE AND
DISCLOSURES THROUGH PROCESSES AND CHANNELS THAT ARE CONSISTENT
WITH FERPA AND THE DEPLOYER'S FERPA NOTICES AND STUDENT RECORD
ACCESS PROCEDURES, INCLUDING, WHERE APPLICABLE, NOTICE TO A PARENT
OR GUARDIAN OR AN ELIGIBLE STUDENT.
      (b) A DEPLOYER THAT IS SUBJECT TO FERPA IS NOT REQUIRED TO
ESTABLISH A SEPARA TE OR DUPLICATIVE NOTICE OR DISCLOSURE PROCESS IF
THE DEPLOYER HAS ESTABLISHED A NOTICE OR DISCLOSURE PROCESS TO
COMPLY WITH FERPA.
      6-1-1705. Consumer rights - correction - human review and
reconsideration - rules.
      (1) (a)   WHEN A CONSUMER EXPERIENCES AN ADVERSE OUTCOME
RES ULTING FROM A CONSEQUENTIAL DECISION IN WHICH A COVERED ADMT
MATERIALLY INFLUENCES THE CONSEQUENTIAL DECISION, THE CONSUMER
MAY REQUEST AND THE DEPLOYER SHALL PROVIDE IN RESPONSE TO THE
REQUEST:
      (I)    INSTRUCTIONS    FOR REQUESTING    PERSONAL   DATA   AND
CORRECTING      FACTUALLY   INCORRECT   OR   MATERIALLY   INACCURATE
PERSONAL DATA USED IN A CONSEQUENTIAL DECISION THAT USED A
COVERED ADMT CONSISTENT WITH SECTION 6-1-1306; AND
      (II)   AN OPPORTUNITY FOR MEANINGFUL HUMAN REVIEW AND
RECONSIDERATION OF THE CONSEQUENTIAL DECISION, TO THE EXTENT
COMMERCIALLY REASONABLE.
PAGE 14-SENATE BILL 26-189
      (b) FOR THE PURPOSES OF THIS SUBSECTION ( 1), THE EXCEPTIONS TO
THE DEFINITION OF "CONSUMER" IN SECTION 6-1-1303 (6)(b) AND THE
EXCEPTIONS IN SECTION 6-1-1304 (2)(k), (2)(n), AND (2)( o) DO NOT APPLY
TO THE RIGHT TO REQUEST CORRECTION OF FACTUALLY INCORRECT OR
MATERIALLY INACCURATE PERSONAL DATA PURSUANT TO THIS SUBSECTION
(1).
       (c)   SUBSECTION    (l)(a) OF THIS SECTION DOES NOT REQUIRE
CORRECTION OF      OPINIONS,   PREDICTIONS,    SCORES,      OR   PROTECTED
EVALUATIONS.
       (2) (a) FOR A CONSEQUENTIAL DECISION RELATING TO EDUCATION,
A   DEPLOYER THAT     IS   SUBJECT TO   FERPA      COMPLIES      WITH   THE
REQUIREMENTS OF SUBSECTION ( 1) OF THIS SECTION THROUGH THE
DEPLOYER'S EXISTING STUDENT RECORD  INSPECTION,    REVIEW, AND
AMENDMENT PROCEDURES AND ANY APPLICABLE DISTRICT COMPLAINT OR
APPEAL PROCESS, IF THE DEPLOYER OFFERS A REASONABLE MECHANISM FOR
A PARENT, GUARDIAN, OR ELIGIBLE STUDENT TO REQUEST CORRECTION OF
MATERIALLY INACCURATE PERSONAL DATA AND RECONSIDERATION WHERE
APPLICABLE UNDER THIS PART 17.
       (b) A DEPLOYER THAT IS SUBJECT TO FERPA IS NOT REQUIRED TO
ESTABLISH A SEPARATE OR DUPLICATIVE CORRECTION OR HUMAN REVIEW
AND RECONSIDERATION PROCESS IF THE DEPLOYER HAS ESTABLISHED A
CORRECTION OR HUMAN REVIEW AND RECONSIDERATION PROCESS TO
COMPLY WITH FERPA.
       (3)   ON OR BEFORE JANUARY 1, 2027, THE ATTORNEY GENERAL
SHALL ADOPT RULES TO CLARIFY AND IMPLEMENT THE REQUIREMENTS OF
THIS SECTION.
       6-1-1706. Enforcement by the attorney general - deceptive trade
practice - right to cure - no private right of action - joinder rules -
reporting - repeal.
     (1) (a) THE ATTORNEY GENERAL SHALL ENFORCE THIS PART 17
THROUGH THE "COLORADO CONSUMER PROTECTION ACT", THIS ARTICLE 1.
       (b) VIOLATIONS OF THE DISCLOSURE REQUIREMENTS AND CONSUMER
RIGHTS DESCRIBED IN SECTIONS 6-1-1702, 6-1-1703, 6-1-1704, AND
PAGE 15-SENATE BILL 26-189
6-1-1705 ARE ENFORCEABLE EXCLUSIVELY BY THE ATTORNEY GENERAL
WITHOUT REGARD TO ANY OTHER PROVISION IN THIS TITLE 6.
      (2) (a)   A VIOLATION OF THIS PART 17 IS A DECEPTIVE TRADE
PRACTICE AND IS SUBJECT TO THE PROVISIONS OF THE "COLORADO
CONSUMER PROTECTION ACT", THIS ARTICLE 1.
      (b) ANY PROVISION OF THE "COLORADO CONSUMER PROTECTION
ACT", THIS ARTICLE 1, THAT IS INCONSISTENT WITH THE EXCLUSIVE
ENFORCEMENT AUTHORITY GRANTED TO THE ATTORNEY GENERAL IN THIS
SECTION FOR A VIOLATION OF THIS PART 17 DOES NOT APPLY TO ANY SUCH
VIOLATION.
      (3) (a) PRIOR TO ANY ENFORCEMENT ACTION FOR A VIOLATION OF
THIS PART 17, THEATTORNEYGENERALSHALLISSUEA NOTICE OF VIOLATION
TO A DEVELOPER OR DEPLOYER IF A CURE IS DEEMED POSSIBLE BY THE
ATTORNEY GENERAL.
      (b) IF THE DEVELOPER OR DEPLOYER FAILS TO CURE A VIOLATION
WITHIN SIXTY DAYS AFTER RECEIPT OF A NOTICE OF VIOLATION, THE
ATTORNEY GENERAL MAY BRING AN ACTION PURSUANT TO THIS SECTION.
      (C) IF THE ATTORNEY GENERAL FINDS AND CAN DEMONSTRATE THAT
A DEVELOPER OR DEPLOYER KNOWINGLY VIOLATED THIS PART 17 OR A
DEVELOPER OR DEPLOYER REPEATEDLY VIOLATED THIS PART 17, THE
ATTORNEY GENERAL IS NOT REQUIRED TO PROVIDE A CURE PERIOD BEFORE
SEEKING PENALTIES OR OTHER RELIEF.
      (d)    IF A VIOLATION IS DISCOVERED IN THE COURSE OF AN
ENFORCEMENT ACTION, A COURT MAY CONSIDER THAT A DEVELOPER OR
DEPLOYER CURED THE VIOLATION WITHIN SIXTY DAYS AFTER RECEIPT OF
WRITTEN NOTICE AS A MITIGATING FACTOR IN DETERMINING CIVIL PENALTIES
OR OTHER MONETARY RELIEF, IF ANY.
      (e) BEGINNING IN JANUARY 2028, AND IN JANUARY EVERY YEAR
THEREAFTER, THE ATTORNEY GENERAL SHALL INCLUDE, AS PART OF THE
                   1  11  11
DEPARTMENTOFLAW SPRESENTATIONDURINGITS SMARTACT HEARING
REQUIRED BY SECTION 2-7-203, A REPORT CONCERNING ENFORCEMENT
ACTIONS BROUGHT AND CURE PERIODS OFFERED BY THE ATTORNEY GENERAL
RELATED TO VIOLATIONS OF THIS PART 17, INCLUDING:
PAGE 16-SENATE BILL 26-189
      (I) THE NUMBER OF ACTIONS FILED BY THE ATTORNEY GENERAL
AGAINST DEVELOPERS AND DEPLOYERS, RESPECTIVELY;
      (II) THE NUMBER OF ACTIONS FILED BY THE ATTORNEY GENERAL
AGAINST DEVELOPERS AND DEPLOYERS, RESPECTIVELY, THAT WERE
COMPLETED;
     (III) THE NUMBER OF CURE PERIODS OFFERED BY THE ATTORNEY
GENERAL TO DEVELOPERS AND DEPLOYERS, RESPECTIVELY;
      (IV) THE NUMBER OF CURE PERIODS OFFERED BY THE ATTORNEY
GENERAL THAT WERE NOT MET BY DEVELOPERS AND DEPLOYERS,
RESPECTIVELY; AND
      (V) THE NUMBER OF VIOLATIONS FILED BY THE ATTORNEY GENERAL
AGAINST DEVELOPERS AND DEPLOYERS, RESPECTIVELY, WHERE A CURE
PERIOD WAS NOT DEEMED POSSIBLE.
      (f) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JANUARY 1, 2030.
      (4) NOTHING IN THIS PART 17 CREATES A NEW PRIVATE RIGHT OF
ACTION. NOTHING IN THIS PART 17 LIMITS OR REDUCES ANY EXISTING RIGHTS
OR REMEDIES AVAILABLE UNDER STATE OR FEDERAL LAW, INCLUDING THE
"COLORADO ANTI-DISCRIMINATION ACT", PARTS 3 TO 8 OF ARTICLE 34 OF
TITLE 24; THE "COLORADO CONSUMER PROTECTION ACT", THIS ARTICLE 1;
PRODUCT LIABILITY LAW; OR OTHER APPLICABLE LAW.
      (5) (a) THE ATTORNEY GENERAL MAY ADOPT RULES AS NECESSARY
TO IMPLEMENT AND CLARIFY THIS PART 17.
      (b) THE ATTORNEY GENERAL MAY ADOPT RULES TO CLARIFY THE
APPLICATION OF THE DEFINITION OF "MATERIALLY INFLUENCE", AS DEFINED
IN SECTION 6-1-1701   (13), INCLUDING PRESUMPTIONS, ILLUSTRATIVE
EXAMPLES, AND OBJECTIVE INDICATORS.
      (c) IN ADOPTING RULES PURSUANT TO THIS PART 17, THE ATTORNEY
GENERAL SHALL UTILIZE A PROCESS THAT MEANINGFULLY ENGAGES
STAKEHOLDERS,    INCLUDING    CONSUMER    ADVOCATES,     DEPLOYERS,
DEVELOPERS, AND SECTOR REGULA TORS, THROUGH PUBLIC NOTICE,
OPPORTUNITY FOR WRITTEN COMMENT, AND AT LEAST ONE PUBLIC HEARING
PAGE 17-SENATE BILL 26-189
AND SHALL ADOPT RULES IN ACCORDANCE WITH SECTION 24-4-103.
      (6) NOTHING IN THIS PART 17 LIMITS THE ABILITY OF A PARTY TO
JOIN NECESSARY OR PERMISSIVE PARTIES UNDER THE COLORADO RULES OF
CIVIL PROCEDURE, INCLUDING RULES 19 AND 20 OF THE COLORADO RULES
OF CIVIL PROCEDURE, IN ANY ACTION ARISING UNDER EXISTING LAW.
        6-1-1707. Liability - fault - allocation - no joint and several
liability - indemnification prohibited - effect on existing law.
      ( 1) A DEVELOPER OR DEPLOYER MAY BE HELD LIABLE IN AN ACTION
ALLEGING UNLAWFUL DISCRIMINATION UNDER STATE ANTI-DISCRIMINATION
LAWS, INCLUDING THE "COLORADO ANTI-DISCRIMINATION ACT", PARTS 3 TO
8 OF ARTICLE 34 OF TITLE 24, ARISING FROM A CONSEQUENTIAL DECISION
MATERIALLY INFLUENCED BY A COVERED ADMT.
      (2) IN AN ACTION DESCRIBED IN SUBSECTION ( 1) OF THIS SECTION,
FAULT SHALL BE ALLOCATED AMONG DEPLOYERS AND DEVELOPERS BASED
ON THEIR RELATIVE FAULT FOR THE VIOLATION.
      (3) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO APPORTION
LIABILITY TO A CLAIMANT WHERE SUCH APPORTIONMENT IS NOT PROVIDED
FOR UNDER EXISTING LAW.
      ( 4) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE
JOINT AND SEVERAL LIABILITY, EXCEPT TO THE EXTENT PERMITTED UNDER
EXISTING LAW.
      (5) (a)   A DEVELOPER IS LIABLE IN AN ACTION DESCRIBED IN
SUBSECTION ( 1) OF THIS SECTION ONLY TO THE EXTENT THAT:
      (I) THE DEVELOPER'S COVERED ADMT WAS USED BY A DEPLOYER IN
A MANNER THAT WAS INTENDED, DOCUMENTED, MARKETED, ADVERTISED,
CONFIGURED, OR CONTRACTED FOR BY THE DEVELOPER; AND
      (II) THE DEVELOPER'S COVERED ADMT MATERIALLY INFLUENCED
A CONSEQUENTIAL DECISION THAT GA VE RISE TO THE VIOLATION OF
EXISTING LAW.
      (b)   A DEVELOPER IS NOT LIABLE UNDER THIS SECTION FOR
PAGE 18-SENATE BILL 26-189
VIOLATIONS OF EXISTING LAW ARISING FROM A DEPLOYER'S USE OF A
COVERED ADMT IN A MANNER THAT WAS NOT INTENDED, DOCUMENTED,
MARKETED, ADVERTISED, CONFIGURED, OR CONTRACTED FOR BY THE
DEVELOPER.
      (6) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE
LIABILITY OF A DEPLOYER FOR THE DEPLOYER'S INDEPENDENT ACTS OR
OMISSIONS IN A CONSEQUENTIAL DECISION MATERIALLY INFLUENCED BY A
COVEREDADMT,INCLUDINGUSINGANADMTINAMANNERTHATWASNOT
INTENDED, DOCUMENTED, MARKETED, ADVERTISED, CONFIGURED, OR
CONTRACTED FOR BY THE DEVELOPER IF THE DEVELOPER OF THE COVERED
ADMT COMPLIED WITH SECTION 6-1-1702.
      (7) (a)   NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF A
PROVISION OF A CONTRACT FOR THE USE OF AUTOMATED DECISION-MAKING
TECHNOLOGY IN MAKING A CONSEQUENTIAL DECISION OR ANY OTHER
CONTRACT BETWEEN A DEVELOPER AND DEPLOYER PURPORTS TO INDEMNIFY,
DEFEND, OR HOLD HARMLESS OR HAS THE EFFECT OF INDEMNIFYING,
DEFENDING, OR HOLDING HARMLESS THE INDEMNITEE FROM OR AGAINST ANY
LIABILITY FOR DAMAGES PURSUANT TO THIS SECTION RESULTING FROM THE
DEVELOPER'S OR DEPLOYER'S OWN ACTS OR OMISSIONS RELATED TO THE USE
OF   AUTOMATED      DECISION-MAKING      TECHNOLOGY        IN   MAKING
CONSEQUENTIAL      DECISIONS   IN   VIOLATION   OF   THE   "COLORADO
ANTI-DISCRIMINATION ACT", PARTS 3 TO 8 OF ARTICLE 34 OF TITLE 24, OR
OTHER COLORADO ANTI-DISCRIMINATION LAW, THE PROVISION IS CONTRARY
TO PUBLIC POLICY AND VOID.
      (b) THE LIMITATIONS OF SUBSECTION (7)(a) OF THIS SECTION DO NOT
APPLY TO A DEVELOPER WHERE THE USE OF THE COVERED ADMT IN MAKING
A CONSEQUENTIAL DECISION WAS NOT INTENDED, DOCUMENTED, MARKETED,
ADVERTISED, CONFIGURED, OR CONTRACTED FOR BY THE DEVELOPER IF THE
DEVELOPER OF THE COVERED ADMT COMPLIED WITH SECTION 6-1-1702.
      (C)    THIS SUBSECTION (7) DOES NOT OTHER WISE LIMIT THE
ENFORCEABILITY OF CONTRACT TERMS BETWEEN PARTIES ACTING IN A
COMMERCIAL OR BUSINESS CAPACITY, EXCEPT TO THE EXTENT OTHERWISE
PROVIDED BY APPLICABLE LAW.
      (d) THIS SUBSECTION (7) DOES NOT PROHIBIT OR LIMIT ANY PERSON
FROM OBTAINING OR MAKING A CLAIM ON APPLICABLE INSURANCE FOR ANY
PAGE 19-SENATE BILL 26-189
APPLICABLE ALLEGED LIABILITIES OR RELATED LOSSES.
      (8) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT,
DISPLACE, OR OTHERWISE AFFECT ANY LIABILITY THAT A DEVELOPER OR A
DEPLOYER MAY HA VE, SEPARATE AND APART FROM LIABILITY UNDER THIS
SECTION, FOR A VIOLATION OF STATE LAW. COMPLIANCE WITH THE
REQUIREMENTS OF THIS PART 17 IS NOT A DEFENSE TO AND DOES NOT
OTHERWISE EXCUSE NONCOMPLIANCE WITH ANY APPLICABLE LAW.
      (9) THE USE OF AN ADMT IN A CONSEQUENTIAL DECISION DOES NOT
EXCUSE, JUSTIFY, OR PROVIDE A DEFENSE TO ANY OBLIGATION OR LIABILITY
UNDER STATE OR FEDERAL LAW, INCLUDING OBLIGATIONS AND LIABILITY
RELATED TO DISCRIMINATION OR CONSUMER PROTECTION.
      6-1-1708. Compliance with other legal obligations - insurers -
covered entities - disclosures.
      (1) (a) AN INSURER, AS DEFINED IN SECTION 10-1-102 (13), AND
AFFILIATED ENTITIES THAT ARE SUBJECT TO THE REQUIREMENTS OF SECTION
10-3-1104.9 ARE IN COMPLIANCE WITH THIS PART 17 IN THE PRACTICE OF
INSURANCE.
      (b)   IF AN INSURER IS NOT DEEMED IN COMPLIANCE PURSUANT TO
SUBSECTION (l)(a) OF THIS SECTION, THE INSURER SHALL PROVIDE NOTICE
AND DISCLOSURE OF ITS USE OF A COVERED ADMT IN MATERIALLY
INFLUENCING A CONSEQUENTIAL DECISION REGARDING THE PRACTICE OF
INSURANCE PURSUANT TO THE DISCLOSURE REQUIREMENTS OF SECTION
6-1-1704 (3), TO THE EXTENT APPLICABLE.
      (2) THIS SECTION DOES NOT LIMIT THE APPLICABILITY OF THIS PART
17 TO USES OF COVERED ADMT RELATED TO INSURER EMPLOYMENT OR
INSURER EMPLOYMENT OPPORTUNITIES BY INSURERS AND AFFILIATED
ENTITIES THAT ARE SUBJECT TO THE REQUIREMENTS  OF SECTION
10-3-1104.9.
      (3) (a) SECTIONS 6-1-1701, 6-1-1702, 6-1-1703, 6-1-1704, 6-1-1705,
AND 6-1-1706 DO NOT APPLY TO A COVERED ENTITY WITHIN THE MEANING
OF THE FEDERAL "HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY
ACT OF 1996", 42 U.S.C. SECS. 1320d TO 1320d-9, AND THE REGULATIONS
PROMULGATED UNDER THE FEDERAL ACT, ORA COVERED ENTITY'S BUSINESS
PAGE 20-SENATE BILL 26-189
AS SOCIA TES FOR ANY SERVICES RENDERED TO A COVERED ENTITY, TO THE
EXTENT THE COVERED ENTITY IS DOING BUSINESS IN COLORADO, EXCEPT FOR
A CONSEQUENTIAL DECISION RELATED TO EMPLOYMENT OR AN EMPLOYMENT
OPPORTUNITY.
        (b) NOTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, FOR A
COVERED ENTITY THAT IS A HEALTH-CARE PROVIDER, AS DEFINED IN 45 CFR
160 .103, THIS SUBSECTION (3) APPLIES ONLY IF THE HEALTH-CARE PROVIDER
IS OPERATING FROM A LOCATION WITHIN COLORADO.
        (c) A COVERED ENTITY SHALL PROVIDE PATIENTS WITH A GENERAL
NOTICE OF USE OF ADVANCED TECHNOLOGIES, INCLUDING A COVERED
ADMT. THE NOTICE MAY BE INCORPORATED WITH OTHER NOTICES
DESCRIBING PATIENT RIGHTS AND HOW THE COVERED ENTITY PROVIDES
CARE.
     (d) NOTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, A
COVERED ENTITY THAT USES A COVERED ADMTTO DETERMINE A PATIENT'S
ELIGIBILITY FOR FINANCIAL ASSISTANCE, INCLUDING DISCOUNTED CARE AS
DESCRIBED IN SECTION 25.5-3-502, SHALL PROVIDE A PATIENT THE
FOLLOWING DISCLOSURES:
        (I)     A PLAIN LANGUAGE DESCRIPTION OF THE CONSEQUENTIAL
DECISION AND THE ROLE OF THE COVERED ADMT IN THE CONSEQUENTIAL
DECISION;
        (II)    THE TYPES OF INFORMATION ABOUT THE INDIVIDUAL THE
COVERED ENTITY RELIED UPON IN MAKING ITS DETERMINATION OF
ELIGIBILITY, EXCEPT FOR TRADE SECRETS AND OTHER CONFIDENTIAL OR
LEGALLY PROTECTED INFORMATION;
        (Ill)     INFORMATION ON HOW TO REQUEST CORRECTION OF
MATERIALLY INACCURATE PERSONAL DATA HELD BY THE COVERED ENTITY
CONSISTENT WITH THE FEDERAL "HEALTH INSURANCE PORTABILITY AND
ACCOUNTABILITY ACT OF 1996", 42 U.S.C. SECS. 1320d TO 1320d-9 AND
SECTION 25.5-3-502; AND
        (IV)     INFORMATION ON HOW TO REQUEST MEANINGFUL HUMAN
REVIEW OR RECONSIDERATION, WHERE APPLICABLE.
PAGE 21-SENATE BILL 26-189
       (e) A COVERED ENTITY MAY COMPLY WITH SUBSECTION (3)(d) OF
THIS SECTION THROUGH EITHER AN ADVANCE GENERAL DISCLOSURE OF THE
INFORMATION REQUIRED BY SUBSECTION (3)(d) OF THIS SECTION OR
THROUGH A NOTICE PROVIDED WITHIN THIRTY CALENDAR DAYS AFTER AN
ADVERSE OUTCOME. THIS SECTION DOES NOT CREATE A SEPARATE AND
DUPLICATIVE DISCLOSURE PROCESS OR APPEAL PROCESS IF THE REVIEW
OPPORTUNITIES AND INFORMATION DESCRIBED IN SUBSECTION (3)( d) OF THIS
SECTION ARE PROVIDED.
       (4) SECTIONS 6-1-1701, 6-1-1702, 6-1-1703, 6-1-1704, 6-1-1705,
AND 6-1-1706 DO NOT APPLY TO A MEDICAL DEVICE SUBJECT TO OVERSIGHT
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION OR A
PHARMACEUTICAL OR MEDICAL DEVICE MANUFACTURER'S RESEARCH AND
DEVELOPMENT ACTIVITIES THAT ARE SUBJECT TO OVERSIGHT BY THE UNITED
STATES       FOOD   AND   DRUG   ADMINISTRATION,   INCLUDING   CLINICAL
INVESTIGATIONS CONDUCTED UNDER 21 CFR 312.
      (5) NOTHING IN THIS PART 17 REQUIRES A COVERED ENTITY OR
BUSINESS ASSOCIATE, AS THOSE TERMS ARE DEFINED UNDER THE FEDERAL
"HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996",
42 U.S.C. SECS. 1320d TO 1320d-9, TO DISCLOSE PROTECTED HEALTH
INFORMATION OR OTHER INFORMATION IN A MANNER THAT WOULD VIOLATE
FEDERAL LAW. TO THE EXTENT COMPLIANCE WITH SECTION 6-1-1704 OR
6-1-1705 WOULD CONFLICT WITH FEDERAL HEALTH PRIVACY REQUIREMENTS,
THE DEPLOYER SHALL COMPLY WITH APPLICABLE FEDERAL LAW AND
PROVIDE DISCLOSURES AND ACCESS CONSISTENT WITH THAT LAW.
       (6)    THIS PART 17 DOES NOT REQUIRE A PERSON TO DISCLOSE
NONPUBLIC PERSONAL INFORMATION IN A MANNER THAT WOULD VIOLATE
THE FEDERAL "GRAMM-LEACH-BLILEY ACT", 15 U.S.C. SEC. 6801 ET SEQ.,
OR ITS IMPLEMENTING REGULATIONS.
       6-1-1709. No new private right of action - application of other
law.
       (1) NOTHING IN THIS PART 17 CREATES A NEW PRIVATE RIGHT OF
ACTION.
       (2)    COMPLIANCE WITH THIS PART 17 DOES NOT CONSTITUTE A
DEFENSE TO AND DOES NOT EXCUSE NONCOMPLIANCE WITH ANY APPLICABLE
PAGE 22-SENATE BILL 26-189
LAW.
        SECTION 2. In Colorado Revised Statutes, 6-1-105, add ( 1)(uuuu)
as follows:
        6-1-105. Unfair or deceptive trade practices.
       ( 1) A person engages in a deceptive trade practice when, in the
course of the person's business, vocation, or occupation, the person:
        (uuuu) VIOLATES PART 17 OF THIS ARTICLE I.
        SECTION 3. In Colorado Revised Statutes, 10-3-1104.9, add (3)(e)
as follows:
       10-3-1104.9. Insurers' use of external consumer data and
information sources, algorithms, and predictive models - unfair
discrimination prohibited - rules - stakeholder process required -
investigations - definitions.
       (3) (e) THE COMMISSIONER MAY ADOPT NEW RULES OR UPDATE
EXISTING RULES REGARDING NOTICE AND DISCLOSURES FROM INSURERS TO
CONSUMERS.
        SECTION 4. Appropriation. For the 2026-27 state fiscal year,
$46, 190 is appropriated to the department oflaw. This appropriation is from
the general fund and is based on an assumption that the department will
require an additional 0.4 FTE. To implement this act, the department may
use this appropriation for consumer protection, antitrust, and civil rights.
      SECTION 5. Effective date - applicability. (1) Except as
otherwise provided in subsection (2) of this section, this act takes effect
January 1, 2027.
          (2) Sections 6-1-1704 (4), 6-1-1705 (3 ), and 6-1-1706 (6), Colorado
Revised Statutes, as amended in section 1 of this act, section 10-3-1104.9
(3 )( e), Colorado Revised Statutes, as enacted in section 3 of this act, section
4 of this act, this section, and section 6 of this act take effect upon passage.
       (3) This act applies to consequential decisions made on or after
PAGE 23-SENATE BILL 26-189
January 1, 2027.
        SECTION 6. Safety clause. The general assembly finds ,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
Jam   as a oleman, Sr.
PRESIDENT OF
                                                  ~
                                              SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
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SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
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                   GOVE
PAGE 24-SENATE BILL 26-189